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I came on a bit strong here, but only because I really like the game!

The best designs are functional first, and that's probably more-so if you're designing a setting where it's tough to survive.

Sounds great!

Please remove all useless belts and straps. Seriously.

I think a more appropriate crafting/inventory system is to have it behave more like dwarf fortress. The minecraft style makes less sense since it feels like you are doing the crafting, not your dwarves. It would be a lot more interesting to have orders placed at workshops ala df, with dwarves hauling material to the workshops in order to be crafted into something else. It's less abstract, adds extra problems for the player to solve, and would be visually quite pleasing to see your dwarves plodding around doing the work.